Insecticide and fungicide product lines have rebounded sharply, while the supply-demand imbalance in the technical-grade active ingredient and intermediate markets has become exceptionally pronounced.

Release Date:

2018-07-19

July marks the off-season for chemical production, while the national environmental protection landscape remains challenging. Ongoing policies—such as the central environmental inspection teams’ “follow-up reviews,” Jiangsu’s intensive environmental remediation efforts, and the restructuring of the chemical industry in the Yangtze River Basin—continue to exert downward pressure on the supply side of agrochemical active ingredients and intermediates, with production shutdowns and output restrictions across regions showing no signs of easing. This week (the week ending July 15, 2018; the same applies hereafter) witnessed another serious workplace safety incident, and Jiangsu reported an additional high‑profile environmental event, leading to the gradual depletion of low‑priced inventory in the active ingredient and intermediate markets and driving prices steadily higher. On July 15, 2018, the Zhongnong Lihua Active Ingredient Price Index stood at 121.

　　In July, the chemical industry entered its off-season, while the national environmental protection landscape remains challenging. Policies such as the central environmental inspection teams’ “follow-up reviews,” Jiangsu’s intensive environmental remediation efforts, and the restructuring of the chemical sector in the Yangtze River Basin continue to exert their influence. Pesticide On the supply side of active ingredients and intermediates, production shutdowns and output restrictions across regions have yet to ease. This week (the week of July 15, 2018, and similarly hereafter), another serious workplace safety incident occurred, and Jiangsu reported an additional environmentally‑related event of significant impact, leading to the gradual depletion of low‑priced inventory in the active‑ingredient and intermediate markets and a sustained upward trend in market prices.
　　On July 15, 2018, the Zhongnong Lihua active‑ingredient price index stood at 121.30 points (with the base period set at 100.00 points on July 1, 2014), up 6.13 points month‑on‑month, a gain of 5.32%, and up 29.08 points year‑on‑year, a rise of 31.53%. Notably, this marks a three‑month consecutive rebound following the index’s record low on April 22, 2018, indicating that currently… Pesticide The supply-demand imbalance in the technical-grade active ingredient and intermediate markets is exceptionally pronounced.
　　This was primarily driven by a substantial rebound in the variety of insecticides and fungicides, with Zhongnong Lihua tracking 121 active ingredients. Pesticide Among the original drug varieties, only 8 declined over the past month, while 58 increased, bringing the proportion of rising and stable‑priced products to over 93%.
　　Herbicide market
　　On July 15, 2018, the price index for Zhongnong Lihua’s herbicide technical grade reported 109.17 points, up 1.09 points month-on-month—a modest increase of 1.00%—and up 27.76 points year-on-year, a rise of 34.10%. This was primarily driven by a pullback in glyphosate technical grade prices; meanwhile, products such as bentazone technical grade, mesotrione technical grade, and benazolin‑ethyl technical grade all posted gains of over 10%.
　　Although upstream glycine prices remain elevated, foreign‑trade order intake has slowed, and manufacturers are leaning toward lower‑end pricing. This week, glyphosate technical grade is quoted at RMB 28,000 per ton; whether the market can stabilize going forward remains to be seen. Ammonium glufosinate technical grade remains relatively stable, with current offers at RMB 170,000 per ton. As for diquat base, both raw‑material and formulated‑product inventories remain sizable, keeping the market subdued this week, with quotes at RMB 46,000 per ton.
　　Market sentiment for amide‑type herbicides is increasingly subdued, with manufacturers showing limited willingness to accept new orders. The price of pre‑emergence acetochlor remains firm at RMB 40,000 per ton, while the prices of other active ingredients are as follows: metolachlor at RMB 25,500 per ton, butachlor at RMB 25,000 per ton, isoproturon at RMB 26,000 per ton, and isopropylamine‑chloroacetamide rebounding to RMB 26,000 per ton.
　　The phenol chlorination unit remains subject to operational constraints, keeping the price of 2,4‑D technical grade at a high level of RMB 22,000 per ton. For bensulfuron‑methyl technical grade, constrained upstream supply has kept it in short supply, with market prices above RMB 240,000 per ton. Meanwhile, the Lianyungang production capacity for mesotrione technical grade remains underutilized, resulting in tight supply and an increased quoted price of RMB 240,000 per ton.
　　Manufacturers of pendimethalin technical grade are gradually resuming order intake, with the market price holding steady at RMB 52,000 per ton. For florasulam technical grade, exports remain the primary outlet; amid the domestic off-season for crop protection applications, downstream stockpiling sentiment is strong, yet producers show little willingness to accept new orders, keeping prices at a high level of RMB 135,000 per ton. Trifluralin technical grade is predominantly exported, with production constrained and prices hovering around RMB 37,000 per ton. As for the intermediate of haloxyfop‑P‑methyl technical grade, production remains limited due to capacity constraints, while export orders remain robust, with market quotations currently at RMB 250,000 per ton.
　　Supply of quizalofop‑p‑ethyl technical grade and nicosulfuron technical grade remains tight, with upstream intermediates trading at elevated levels and manufacturers showing limited willingness to accept new orders; prices are quoted at RMB 210,000/ton and RMB 270,000/ton, respectively. For isooctyl ester of fluroxypyr technical grade, manufacturers are receiving a substantial volume of orders, with export bookings booked through year-end, resulting in limited market availability; manufacturers are quoting above RMB 180,000/ton.
　　The sharp rise in resorcinol prices has provided strong cost support for downstream ethofumesate and mesotrione technical grades, with ethofumesate holding steady at RMB 178,000 per tonne. Meanwhile, the mesotrione technical grade market remains tightly supplied, and with no signs of easing in raw material availability, its price has climbed to RMB 230,000 per tonne.
　　Environmental pressure is significant across the industrial parks in northern Jiangsu and at the Dongzhi Park. Supply of cyhalofop‑butyl technical grade is constrained, with manufacturers temporarily halting production; prices have been raised to above RMB 110,000 per ton, while the quoted price for cyhalofop‑butyl SC stands at RMB 45,000 per ton. Cyflufenamid technical grade faces a similar situation, with market prices climbing to RMB 240,000 per ton, and supply of 3,4‑difluorobenzonitrile remains tight. Meanwhile, stocks of sethoxydim technical grade are low, and with export orders being booked ahead of schedule, its market price has risen to RMB 170,000 per ton.
　　The supply of isoproturon technical grade remains tight, but with the domestic application season drawing to a close, market prices for lower‑concentration domestic‑use supplies have held steady at around RMB 85,000 per ton. Meanwhile, export demand for higher‑concentration grades remains robust, pushing market prices above RMB 120,000 per ton. As for atrazine technical grade, despite elevated upstream cyanuric chloride prices, with the application season winding down, manufacturers are maintaining stable quotes at RMB 23,500 per ton.
　　Pesticide market
　　Nicotinic‑based products posted a sharp rebound, while pyrethroid products and the abamectin series saw substantial gains. According to the Zhongnong Lihua insecticide technical‑grade price index released on July 15, 2018, the index surged 9.55% month‑over‑month to 139.99 points, up 34.29 points year‑over‑year, or 32.44%. Technical grades of lambda‑cyhalothrin, flufenoxuron, and chlorfenapyr all recorded increases of nearly 20%.
　　This week, the supply of abamectin technical grade and emamectin benzoate (hereinafter referred to as “emamectin”) technical grade remains tight, with exceptionally constrained availability. The market price for abamectin technical powder has risen to RMB 730,000 per ton, while emamectin technical grade is quoted at RMB 1.28 million per ton, with very limited spot inventory.
　　Nicotinic‑based products have seen a strong rebound, with upstream raw materials such as CCMP, imidazolidine, and cyanoethyl ester remaining at elevated price levels. Low‑priced supply in the market has dwindled, prompting an increase in the price of pymetrozine technical grade to RMB 180,000 per ton and acetamiprid technical grade to RMB 182,000 per ton. Acetamiprid technical grade is holding steady at a high of RMB 280,000 per ton. Meanwhile, thiamethoxam and clothianidin technical grades are underpinned by robust cost support, with production constrained at manufacturers; CCMT and methyl nitroguanidine prices remain elevated, with quotes rising to RMB 120,000 per ton and RMB 165,000 per ton, respectively. For pymidiphos technical grade, cost support is evident, as upstream hydrazine hydrate and 3‑cyano‑pyridine continue to climb, while many producers have halted operations for maintenance, driving the market price up to RMB 170,000 per ton.
　　Phosphorus pentasulfide remains at a high level, and supply of malathion technical grade is tight, keeping prices elevated at RMB 26,000 per ton. Ethyl chloride, supported by rising costs, has pushed downstream technical-grade products such as profenofos, chlorpyrifos, and phoxim to high cost levels; manufacturers are increasingly idling production lines and adopting a cautious approach to order intake. Profenofos technical grade is quoted at RMB 65,000 per ton, chlorpyrifos technical grade has risen to RMB 48,000 per ton, and phoxim technical grade is priced at RMB 44,000 per ton.
　　Fipronil technical‑grade producers are prioritizing order fulfillment, with capacity remaining constrained and prices holding steady at a high of RMB 670,000 per ton. Driven by elevated costs for the intermediate 2,6‑difluorobenzamide, downstream technical grades of flufenoxuron, flufenoxuron‑methyl, etoxazole, and fenpyroximate are also trading at elevated levels. Meanwhile, disruptions in raw‑material supply have further hampered production, pushing market prices to record highs: currently quoted at RMB 450,000/ton, RMB 380,000/ton, RMB 380,000/ton, and RMB 410,000/ton, respectively. Upstream intermediates are expected to remain in tight supply.
　　With upstream methyl ester of bithionol and phenoxybenzaldehyde (hereinafter referred to as “ether aldehyde”) trading at elevated prices, and low operating rates for bifenthrin, cost support for pyrethroids remains exceptionally strong. This week, pyrethroid product quotations continued to rise: the price of lambda‑cyhalothrin technical grade stood at RMB 300,000 per ton; bifenthrin technical grade remained at a high of RMB 390,000 per ton; cypermethrin technical grade saw inventory depletion, prompting a price increase to RMB 120,000 per ton; fenvalerate technical grade is available in very limited spot quantities, holding steady at a high of RMB 104,000 per ton; and lambda‑cyhalothrin mother formulation remained stable at RMB 50,000 per ton.
　　The active ingredients propargite, spirodiclofen, and etoxazole are generally stable, with supply remaining tight, trading at RMB 92,000/ton, RMB 150,000/ton, and RMB 43,000/ton, respectively. Prices are expected to remain steady going forward. Meanwhile, the active ingredients chlorfenapyr and bifenazate are both facing rising production concentration; with constrained capacity, robust demand, and low market inventories, their prices have been raised this week to high levels of RMB 300,000/ton and RMB 440,000/ton, respectively.
　　Fungicide Market
　　The two leading methoxyacrylate products posted a sharp rebound. According to the Zhongnong Lihua fungicide technical‑grade price index released on July 15, 2018, the index stood at 124.40 points, up 8.02% month over month and 25.99 points year over year, representing a 26.41% increase. Among them, prothioconazole technical grade, azoxystrobin technical grade, and dimethomorph technical grade recorded the largest gains.
　　The shutdown of the Lianyungang plant has tightened the supply of chlorophenol, driving prices sharply higher; the active ingredient for difenoconazole is now quoted at RMB 230,000 per ton, with supply remaining tight. The active ingredient for propiconazole, affected by market inventory levels, has stayed at a low price of RMB 135,000 per ton. The active ingredient for hexaconazole remains steady at RMB 165,000 per ton, as the market is primarily working through existing stock. Following an earlier price increase, the active ingredient for tebuconazole has stabilized, trading at RMB 135,000 per ton. With few manufacturers operating, and production constrained in Lianyungang, the supply of intermediates has been impacted, pushing the market price to RMB 85,000 per ton. Meanwhile, domestic producers of fluoxastrobin are running at low capacity, prioritizing export orders, while available market supplies have risen to over RMB 670,000 per ton.
　　Inventory of pyraclostrobin technical grade has declined, upstream intermediates have risen sharply, and most manufacturers have suspended production for maintenance, with the market price quoted at RMB 230,000 per ton. For azoxystrobin technical grade, supply of upstream intermediates remains tight, pushing the price to a new high of RMB 320,000 per ton. Ester‑based strobilurin technical grade has seen its market price adjusted upward to RMB 320,000 per ton due to plant shutdowns in the Lianyungang industrial park. Meanwhile, amid the release of capacity for fluxapyroxad technical grade, prices have eased back to RMB 520,000 per ton. Carbendazim and thiophanate‑methyl technical grades have remained largely stable, with some inventory on hand; however, production restrictions in Ningxia have driven their market prices to RMB 37,000 per ton and RMB 30,000 per ton, respectively.
　　The supply of the technical-grade active ingredient for pyrimethanil is tight, with low operating rates, driving its market price to a high of RMB 165,000 per ton. Demand for the technical-grade active ingredient of fludioxonil is increasing, and with manufacturers concentrated in production, prices have risen to RMB 300,000 per ton, leaving a significant market gap. Meanwhile, producers of the technical-grade active ingredient for prochloraz are facing operational constraints, resulting in low inventory levels and further price hikes to above RMB 140,000 per ton.
　　Supply of cyazofamid technical grade has eased somewhat, but market demand has not seen a significant uptick, with quotes hovering around RMB 780,000 per ton. The thifluzamide technical-grade market remains relatively stable, yet with an increasing number of upstream producers halting operations and inventory gradually being depleted, the quoted price stands at RMB 340,000 per ton. Meanwhile, supply of dimethomorph technical grade, ethirimol technical grade, and iprodione technical grade is tight, with prices quoted at RMB 130,000 per ton, RMB 130,000 per ton, and RMB 165,000 per ton, respectively.
　　Intermediate market
　　This week, crude oil prices remained range-bound at elevated levels, providing cost support to basic raw materials. Downstream chemical markets saw a slight decline in operating rates, as supply and demand continued to balance, leaving the benzene, phenol–ketone, and propylene product lines relatively stable. The chlor-alkali market remained sharply bifurcated: liquid caustic soda edged lower from its recent highs, while bromine prices stayed firm at RMB 29,000 per ton. Fluorochemicals witnessed a modest price recovery, whereas phosphorus‑based chemicals entered the wet season, prompting downward pressure on prices; ethyl chloride, weighed down by weak downstream utilization, was quoted at RMB 27,000 per ton. Ether aldehydes, methyl benzenedicarboxylate, and 2-chloro-5-chloromethylpyridine all held steady at high levels: ether aldehydes remained near RMB 80,000 per ton, buoyed by anti‑dumping measures; methyl benzenedicarboxylate was priced at RMB 75,000 per ton, with CCMP trading at a robust RMB 145,000 per ton; CCMT remained tight, quoted at RMB 58,000 per ton. Meanwhile, kraft acid, biphenyl alcohol, and cyanoacetyl chloride faced severe supply constraints, keeping prices elevated—kraft acid surpassed RMB 270,000 per ton, with prospects for continued tightness going forward. As for diazines, imidazolines, and cyanoethyl esters, low operating rates have kept supplies tight; diazines were quoted at RMB 50,000 per ton, with sluggish demand focused primarily on destocking.
　　Conclusion
　　The supply outlook is far from optimistic, and following the clearance of inventories for certain products, prices have rebounded sharply. With a steady increase in export orders, ex‑factory prices in the active‑ingredient and intermediate markets are expected to remain elevated going forward. The current market conditions are bound to exacerbate supply‑demand imbalances, further accelerating industry consolidation and driving a process of survival of the fittest and continuous upgrading.